Beijin Construction Materials (000786.SZ) announced that on December 29, 2023, the company and Shijun (Hong Kong) Co., Ltd...
According to Zhitong Finance App, Beijing Construction Materials (000786.SZ) announced that on December 29, 2023, the company signed a “Share Transfer Agreement with Shijun (Hong Kong) Co., Ltd., Jiangmen Chengsheng Investment Co., Ltd.”, and other counterparties, agreeing that the company will transfer 78.34% of the shares (“target shares”) of Gabrielle Chemical Group Co., Ltd. (“Garberry” or “target company”). The transfer price of the underlying shares was 4,074 billion yuan. The company paid in RMB in cash, and after the transfer was completed, the company held 78.34% of the shares in Garbo.
Regarding the preliminary matters of the above share transfer, the company and Shijun (Hong Kong) Co., Ltd. signed a “Memorandum of Transaction Terms” and a “Good faith fund agreement” on September 20, 2023, and paid a due diligence fee of 10 million yuan to a bank account established in the name of the company and jointly supervised by both parties. The goodwill fund part of the equity transfer amount payable by the company. <交易条款备忘录><诚意金协议>For details, please refer to the “Notice Concerning the Signing of the Acquisition Project” issued by the Company on September 21, 2023.
Through this transaction, Garbaoli will become a holding subsidiary of the company. The company's paint business production capacity will jump from the current 103,000 tons to more than 1.3 million tons, the production capacity layout will expand from North China to the whole country, and the paint sector business will be significantly strengthened. Among them, the architectural coatings business will rise to a leading position in the domestic industry. After the transaction is completed, the two sides will promote collaborative development in procurement, production, sales, R&D, etc., and at the same time explore the potential for collaboration with the company's existing business, further enhance production efficiency, expand market share, enhance the company's ability to operate continuously and withstand risks, and enhance profitability.